US EditionGavin Newsom says these middlemen drive up drug prices. He’s got a new plan to fix it
- California Governor Gavin Newsom announced a plan on May 15, 2025, to regulate prescription drug middlemen in the state.
- The announcement follows a 56% increase in California's prescription drug spending since 2017, driven partly by opaque pharmacy benefit manager practices.
- Newsom's plan proposes that pharmacy benefit managers be licensed by California's regulatory agency overseeing managed health services and mandates that they disclose their financial and operational information.
- Newsom expressed concern over escalating prescription medication costs and highlighted efforts to uncover concealed expenses, while critics argue that intermediaries increase charges by adding fees and withholding discounts to boost their profits.
- The plan aims to increase transparency and affordability, but Newsom vetoed similar oversight last year, emphasizing the need for more detailed cost data.
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Gavin Newsom says these middlemen drive up drug prices. He’s got a new plan to fix it
Gov. Gavin Newsom will seek to regulate pharmaceutical middlemen that he blames for driving up prescription drug costs in California.
·Sacramento, United States
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